tax and duty free importation of a 30 HP sandmill (for paint manufacturing) cost ₱360,000, CIF Manila. Bank charges, arrastre ₱25,000. Other incidental expenses amounted to ₱20,000. Salvage value of the mill is estimated to be ₱60,000 after 20 years. Find the appraisal value of the mill, using straight-line depreciation, at the end of (a) 10 years and (b) 15 years?

College Accounting, Chapters 1-27
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ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
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A tax and duty free importation of a 30 HP sandmill (for paint manufacturing) cost ₱360,000, CIF Manila. Bank charges, arrastre ₱25,000. Other incidental expenses amounted to ₱20,000. Salvage value of the mill is estimated to be ₱60,000 after 20 years. Find the appraisal value of the mill, using straight-line depreciation, at the end of (a) 10 years and (b) 15 years?

: (a) ₱235,000 (b) ₱147,500

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